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Senior Contributor

Strong dollar pushes Brazil soybean sales

Hello,

 

Yesterday, the value of the U.S. dollar in Brazil reached US$ 3.60. That is the highest value in more than 12 years. Recently, the appreciation of the Dollar and Brazilian farmers needs pushed sales. In the state of Mato Grosso, the country’s top producer of the oilseed, anticipated sales for the 2015/2016 crop reached 60% - a record for the period, as I reported at agrosouth-news.com.  This a guarantee of income to pay the commitments of next year," analyzed Nelso Piccoli, president of the Federation of Agriculture and Livestock of Mato Grosso.

 

Some farmers were speculating to get an even higher value and retaining big volumes of beans. Some said that would even await the day the dollar value gets to R$ 4.00, but most analysts say that the currency would just devalued at that level by 2016. Even then, the worst projections put the dollar value at R$ 3.90.

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3 Replies
Senior Contributor

Re: Strong dollar pushes Brazil soybean sales

Just to think even 12 years ago soybeans were worth more than they are today
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Veteran Advisor

Re: Strong dollar pushes Brazil soybean sales

A qquestion.  there have been times in history when people went overseas to go shopping for things, and due to the favoriable

dollar value, you get more for you buck...........

 

IF YOU STILL HAVE A BUCK.....is this the time to go across the border and maybe make a few purchases ??

 

JD, despite what they claim, alot is made in mexico........buy one down there, but i do not know the import taxes nor the tariffs

or the shipping, but if in south america, it's almost 3:1, would that help ofset some things ?

 

just a thought.

 

 

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Senior Contributor

Re: Strong dollar pushes Brazil soybean sales

Considering the macroeconomics, South America is very different compared to Mexico. Mexico is essentially a manufacturing country, while Brazil or Argentina are more of agricultural countries. The country with the most strong industry in South America, Brazil, has broken the car industry recently. People purchased cars with a credit explosion and now there are a lot of leftovers from last year, making no sense to produce new cars. Not a lot of electronics are made in South America and a lot of taxes are put on electronics.

 

So I may say that if you come down here looking for cheap hotels or restaurants, this will be interesting. But if you are looking for buying, no place will have a final price cheaper than the U.S. It seems that a lot of manufactured good in these days are made with inputs coming from all over the world. You will not have a very comepetitive final price if your economy is closed like Brazil or Argentina. The currenty is just a slice of it.

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